Federal Grant Support Program

The Illinois Department of Commerce and Economic Opportunity (DCEO) is administering the Federal Grant Support Program to increase Illinois participation in competitive federal funding opportunities. The program was established because Illinois receives less federal grant funding per capita than comparable states, and the State seeks to improve the competitiveness of Illinois-based applicants pursuing federal discretionary grants. The program is funded through the State of Illinois Fiscal Year 2026 budget under Public Act 104-0003 and represents the second round of funding issued through this initiative. DCEO intends for this program to support projects that align with Illinois economic development priorities, including business climate improvements, equitable economic growth, workforce and entrepreneurship development, and the expansion of the clean energy economy. The program provides state matching funds for applicants pursuing competitive federal grants. DCEO may award between $10,000 and $2,000,000 per project, with a total anticipated program allocation of $16,900,000 and approximately 30 awards expected. Awards are structured as matching grants and may provide up to a 1:1 match of the applicant's cash contribution toward a project, but the state contribution cannot exceed the amount of the associated federal award. Applicants are required to provide a cash contribution toward the project, and in-kind contributions or contributions from other state agencies are not eligible for matching calculations. Eligible expenses may include both capital and operational costs. Capital projects funded through Rebuild Illinois appropriations may support architectural and engineering design, land acquisition, utility work, site preparation, construction, rehabilitation, and durable equipment purchases. Eligible applicants include local governments, nonprofit organizations, for-profit organizations, small businesses, and educational organizations. Applicants must be the primary applicant for a federal funding opportunity submitted directly to a federal grant-making agency. Illinois-based organizations must ensure that at least 51 percent of project activities occur within Illinois, while organizations headquartered outside Illinois that do not commit to becoming Illinois-based must ensure that at least 90 percent of activities occur within the state. Projects focused primarily on transportation, parks, social services, or housing are generally ineligible unless the federal opportunity originates from the U.S. Economic Development Administration. Applicants pursuing federal SBIR or STTR Phase I awards, as well as initial Phase II awards, are not eligible under this program because separate matching programs exist for those opportunities. Applications are accepted on a rolling basis, but submissions must be received at least three weeks before the deadline of the associated federal grant opportunity. Applications submitted less than three weeks before the federal deadline will not be considered. DCEO anticipates making award decisions approximately three weeks after receiving an application. If selected, applicants receive a commitment letter indicating that the State intends to provide matching funds contingent upon the applicant receiving the associated federal award. Applicants must notify DCEO within 120 days of the commitment letter that the federal award has been received in order to begin the grant agreement process. One additional 120-day extension may be granted if the federal award decision remains pending. The application package requires submission of several mandatory forms and disclosures. Applicants must complete the Uniform Grant Application, Uniform Budget, Conflict of Interest Disclosure, Mandatory Disclosure, and a program-specific application form. Submission occurs electronically through the designated Smartsheet application portal. Applicants must also maintain prequalification status through the Illinois GATA Grantee Portal, including valid SAM.gov registration, UEI number compliance, good standing with the Illinois Secretary of State where applicable, and absence from federal or state exclusion lists. Organizations must also meet indirect cost rate requirements if charging indirect costs, either through a federally negotiated indirect cost rate agreement, a state-negotiated rate, or election of the 15 percent de minimis rate. Applications are evaluated competitively using a 100-point scoring framework divided into Need, Capacity, and Quality categories. Need scoring evaluates whether state matching support is necessary for project viability or competitiveness and whether projects benefit underserved communities. Capacity scoring reviews organizational experience, staffing, partnerships, facilities, and financial readiness. Quality scoring heavily emphasizes alignment with Illinois economic development priorities and the long-term economic impact of the proposed project, including outcomes such as job creation, private investment, research and development activity, exports, patents, startup creation, and impact on key industries. Applications scoring above 70 points may receive funding recommendations, with awards made on a rolling basis until funding is exhausted. The anticipated performance period for awards is October 1, 2025 through October 1, 2027. Award recipients will be required to submit quarterly financial and performance reports covering project milestones, employment impacts, leveraged investment, and other economic development outcomes. Capital projects may also be subject to environmental review requirements, prevailing wage compliance, Illinois Works Apprenticeship Initiative requirements, and Business Enterprise Program participation goals. Questions regarding the program may be directed to Chad Phillips at CEO.FedGrantMatch@illinois.gov or by phone at 312-209-9764. Additional general grant support questions may be directed to the DCEO Grant Help Desk at CEO.GrantHelp@illinois.gov.

Demonstrate clearly why state matching support is necessary and how it increases competitiveness for the federal proposal; emphasize measurable Illinois economic development impact including jobs, investment, R&D, startups, or exports; align the project with one or more Illinois economic growth plan priorities; provide strong documentation of cash match commitments and partner capacity; highlight benefits to underserved communities where applicable.